Land Auction

Help Support CattleToday:

TC, let us know how this sells-if you hear. Had a short conversation yesterday with a banker who was whining about land prices being down 30%. She said her bank had to buy back 320 acres from a borrower who couldn't repay. She didn't know that I knew her bank had made it impossible for anyone else to bid at the sheriffs sale. They set terms of sale that were impossible to meet. Cash in hand or cashiers check for the full amount, payable immediately. No 30 day closing as is normal. I had no sympathy for her problem.
 
Chocolate Cow2":vqp6s5x6 said:
TC, let us know how this sells-if you hear. Had a short conversation yesterday with a banker who was whining about land prices being down 30%. She said her bank had to buy back 320 acres from a borrower who couldn't repay. She didn't know that I knew her bank had made it impossible for anyone else to bid at the sheriffs sale. They set terms of sale that were impossible to meet. Cash in hand or cashiers check for the full amount, payable immediately. No 30 day closing as is normal. I had no sympathy for her problem.
Click to expand...
That's interesting. I've noticed a lot of land for sale or auction lately but primarily smaller parcels. I'll try & keep tabs on this one & let you know.
 
Chocolate Cow2":2d9vt334 said:
TC, let us know how this sells-if you hear. Had a short conversation yesterday with a banker who was whining about land prices being down 30%. She said her bank had to buy back 320 acres from a borrower who couldn't repay. She didn't know that I knew her bank had made it impossible for anyone else to bid at the sheriffs sale. They set terms of sale that were impossible to meet. Cash in hand or cashiers check for the full amount, payable immediately. No 30 day closing as is normal. I had no sympathy for her problem.
Click to expand...
That's the way most land sells around here at auction. Keeps the yahoo's from bidding that want but can't get financing. If the bank didn't sell repoed
property that way they'd be auctioning the peice of land no telling how many times.
 
Chocolate Cow2":g05aqkd8 said:
TC, let us know how this sells-if you hear. Had a short conversation yesterday with a banker who was whining about land prices being down 30%. She said her bank had to buy back 320 acres from a borrower who couldn't repay. She didn't know that I knew her bank had made it impossible for anyone else to bid at the sheriffs sale. They set terms of sale that were impossible to meet. Cash in hand or cashiers check for the full amount, payable immediately. No 30 day closing as is normal. I had no sympathy for her problem.
Click to expand...
Why would the bank want to end up owning a piece of property that has already lost 30% of it's value and make it almost impossible for anyone else to buy it?? The terms of any sale are posted at the same time the property is posted for foreclosure in the court house so buyers should show up aware of the conditions of any sale. That's a deep hole even for a bank to dig out of.
 
I don't have any answers. This particular bank was pretty generous with their $$$ and now that things are tighter in ag, they've gotten tough with borrowers. I don't know if they will possibly sue the borrower for the balance he owes so they tried to keep the price of this land low. I do know there is a huge amount still owed and this land sale didn't cover 1/3 of the indebtedness. I do know they were not working to benefit his situation. I would think the borrower would file bankruptcy and tell the bank to deal with it. It's been a long time since I've been in the banking industry and I know laws have changed. You can bet this bank has enough legal representation that they know all the angles.
 
The bank gets the first bid and will bid "the balance he owes them" plus accrued interest and attorney fees. If noone raises the bid on the already overpriced property the bank will own it and the borrower owes nothing because the bank bid enough to clear the debt off the books. Doesn't sound fair but just the way it is.
 
No worries, TC. Thanks. At least it did sell. There's been a couple of recent land sales in my area where the family wouldn't accept the final bid. That's not good.
 
TexasBred: so now the bank owns 320 over-priced acres in a depressed land market. Do they re-sell, most likely at a loss, and turn the loss into their Insurance? A bank can own property for a short term (or it was that way years ago). The bank certainly can't own this property long enough to see prices rebound and realize a profit. K-State believes land prices won't turn around for 20 years.
 
Chocolate Cow2":3rthf005 said:
TexasBred: so now the bank owns 320 over-priced acres in a depressed land market. Do they re-sell, most likely at a loss, and turn the loss into their Insurance? A bank can own property for a short term (or it was that way years ago). The bank certainly can't own this property long enough to see prices rebound and realize a profit. K-State believes land prices won't turn around for 20 years.
Click to expand...

They can keep it in the books indefinitely. May have to do some extra transfers or restructuring but "where there's a will there's a way." May choose to write part of it off, or offer favorable financing terms, etc for potential buyers but unless they have poor management banks don't go broke. They stay in business by minimizing their risk exposure through taking calculated risks. They don't usually wind up in the hole.
 
Chocolate Cow2":cpsezgv9 said:
TC, let us know how this sells-if you hear. Had a short conversation yesterday with a banker who was whining about land prices being down 30%. She said her bank had to buy back 320 acres from a borrower who couldn't repay. She didn't know that I knew her bank had made it impossible for anyone else to bid at the sheriffs sale. They set terms of sale that were impossible to meet. Cash in hand or cashiers check for the full amount, payable immediately. No 30 day closing as is normal. I had no sympathy for her problem.
Click to expand...


Had a similar experience a few years back with a local bank that I had banked with for 20 years. 75 acres farmland. It was a foreclosure. Vice President of the bank was married into the family that lost the property. He and I were the only ones that bid. Everytime I bid he would raise the bid $1. He was trying to embarrass me. It was obvious. Anyway I finally got it bought. He then said that it had to be closed within 12 hours. He knew I didn't have the money in my checking account to cover it and he also knew he wasnt going to let a loan be approved. What he didn't know was that I had the money in my pocket. Had to use the banks attorney and he bucked the bank and told them that was :bs: and that they couldn't force me to close it that fast anyway. So evidently there were some legalities that gave me more time even though in this particular case I didn't need it.

Standard procedure here for auctions is bid price, plus 10% buyers premium for auction company, plus buyer pays for survey, taxes prorated. 10% down (cash, certified check, or check with bank letter of guarantee) as soon as auction ends with 30-60 days to close. Sometimes terms vary slightly but this is standard procedure.
 
JMJ Farms":rmnn1uvt said:
Chocolate Cow2":rmnn1uvt said:
TC, let us know how this sells-if you hear. Had a short conversation yesterday with a banker who was whining about land prices being down 30%. She said her bank had to buy back 320 acres from a borrower who couldn't repay. She didn't know that I knew her bank had made it impossible for anyone else to bid at the sheriffs sale. They set terms of sale that were impossible to meet. Cash in hand or cashiers check for the full amount, payable immediately. No 30 day closing as is normal. I had no sympathy for her problem.
Click to expand...


Had a similar experience a few years back with a local bank that I had banked with for 20 years. 75 acres farmland. It was a foreclosure. Vice President of the bank was married into the family that lost the property. He and I were the only ones that bid. Everytime I bid he would raise the bid $1. He was trying to embarrass me. It was obvious. Anyway I finally got it bought. He then said that it had to be closed within 12 hours. He knew I didn't have the money in my checking account to cover it and he also knew he wasnt going to let a loan be approved. What he didn't know was that I had the money in my pocket. Had to use the banks attorney and he bucked the bank and told them that was :bs: and that they couldn't force me to close it that fast anyway. So evidently there were some legalities that gave me more time even though in this particular case I didn't need it.

Standard procedure here for auctions is bid price, plus 10% buyers premium for auction company, plus buyer pays for survey, taxes prorated. 10% down (cash, certified check, or check with bank letter of guarantee) as soon as auction ends with 30-60 days to close. Sometimes terms vary slightly but this is standard procedure.
Click to expand...
Well played, JMJ!
 
JMJ Farms":1lkzb3p4 said:
Chocolate Cow2":1lkzb3p4 said:
TC, let us know how this sells-if you hear. Had a short conversation yesterday with a banker who was whining about land prices being down 30%. She said her bank had to buy back 320 acres from a borrower who couldn't repay. She didn't know that I knew her bank had made it impossible for anyone else to bid at the sheriffs sale. They set terms of sale that were impossible to meet. Cash in hand or cashiers check for the full amount, payable immediately. No 30 day closing as is normal. I had no sympathy for her problem.
Click to expand...


Had a similar experience a few years back with a local bank that I had banked with for 20 years. 75 acres farmland. It was a foreclosure. Vice President of the bank was married into the family that lost the property. He and I were the only ones that bid. Everytime I bid he would raise the bid $1. He was trying to embarrass me. It was obvious. Anyway I finally got it bought. He then said that it had to be closed within 12 hours. He knew I didn't have the money in my checking account to cover it and he also knew he wasnt going to let a loan be approved. What he didn't know was that I had the money in my pocket. Had to use the banks attorney and he bucked the bank and told them that was :bs: and that they couldn't force me to close it that fast anyway. So evidently there were some legalities that gave me more time even though in this particular case I didn't need it.

Standard procedure here for auctions is bid price, plus 10% buyers premium for auction company, plus buyer pays for survey, taxes prorated. 10% down (cash, certified check, or check with bank letter of guarantee) as soon as auction ends with 30-60 days to close. Sometimes terms vary slightly but this is standard procedure.
Click to expand...
Glad you nailed him. Punk young bank officer probably had no idea he was breaking the law...bank gets one bid and that's it....you pay a dollar more and it's yours subject to conditions you mentioned.
 

Similar threads

R
Land Swindlers
2 3
Replies
48
Views
2K
rocfarm
R
Warren Allison
Hog Auction today
Replies
8
Views
295
Logan52
L
TominTX
Anyone else finance land through Capital Farm Credit?
Replies
4
Views
1K
Peace
P
O
Land in exchange for labor over the yrs for employees
2
Replies
25
Views
2K
bbirder
bbirder
C
Buying equipment at tax foreclosure auction
Replies
4
Views
3K
BRYANT
B

Latest posts

Top